PNB Gets Better Ratings from S&P and Moody’s
Standard & Poor’s Ratings Services hiked its outlook on PNB from "stable" to "positive" last March 2014, citing the gradual improvement in its asset quality following the merger with Allied Bank. The positive outlook on PNB also reflects expectations that the Bank’s asset quality could keep improving, given the efforts to better its underwriting standard.
In addition, Moody’s Investors Service has also raised Philippine National Bank’s (PNB) credit rating outlook from "stable" to "positive" this May 2014.
Moody’s has also affirmed PNB’s Ba2/NP local and foreign currency deposit ratings which reflects ongoing improvements in the credit profile of the Bank. Likewise, the ratings agency has raised PNB’s financial strength rating (BFSR) / baseline credit assessment (BCA) to D-/ba3 from E+/b1, reflecting the improvement in the Bank’s financial profile, following the merger with Allied Banking Corporation in 2013. In addition, the outlook on PNB’s BFSR is maintained as "positive".
"The positive outlook on PNB’s Ba2/NP foreign currency deposit ratings reflects the ongoing improvements in the Bank’s credit profile, as well as expectations that further improvements in its financial performance will likely bring its credit profile in line with the industry average over the next 18-24 months. In particular, its profitability and asset quality are expected to improve as a result of the completion of the integration process," Moody’s explained.
Last February 2014, PNB successfully generated Php 11.6 billion in fresh capital from a stock rights offering which strengthened the Bank’s capital position under the Basel III standards. The success of the offering is also a strong testament that the Bank’s stockholders have full confidence on the long-term prospects of PNB.
"Given the positive outlook on PNB’s deposit ratings, an upward revision of its BCA would likely lead to an upgrade of its ratings, assuming that its credit metrics remain robust," the ratings agency said.
S&P’s and Moody’s assessments are also in good timing with PNB’s annual stockholders’ meeting which will be held on May 27, 2014 at the Century Park Hotel.
As of December 31, 2013, PNB was the fourth largest private bank in the country with consolidated assets reaching to Php 618.1 billion, higher by Php 287.9 billion or 87.2% compared to Php 330.2 billion in the previous year. PNB posted a net income of Php 5.2 billion in 2013, a 9.6% increase against the Php 4.7 billion registered in 2012. Total operating income stood at Php 24.6 billion, up by 48% from the same period a year ago with net interest income aggregating Php 13.7 billion, almost double the previous year’s level.
To date, PNB has a total of 656 domestic branches and the largest global presence across Asia, Europe, Middle East, and North America with 77 overseas offices.
The new PNB is now in a better and stronger position to serve its clients’ interests and enhance overall customer experience.
– (2014, May 20) Moody’s affirms long-term ratings of PNB and changes outlook to positive from stable; also raises standalone credit strength. Moody’s. Retrieved from https://www.moodys.com/research/Moodys-affirms-long-term-ratings-of-PNB-and-changes-outlook–PR_299648
– (2014, March 19) PNB gets better rating from S&P The Daily Tribune, p. 10